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If a firm has predictable cyclical or seasonal cash flows it can maintain a consistent adequate cash balance and use bank loans and selling marketable

If a firm has predictable cyclical or seasonal cash flows it can

maintain a consistent adequate cash balance and use bank loans and selling marketable securities to cover any predictable deficits

always maintain enough cash to cover the highest cash demands- it must not risk default

have a bank loan ready to cover all needed cash amounts

carry minimal cash and use bank loans and selling marketable securities instead- since cash flows are predictable

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